See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 15, 2026
Homebuyer Programs in Peoria, IL (2026)
Peoria is the largest city in central Illinois, sitting along the Illinois River with a median home price of around $146,000 — one of the most affordable mid-sized housing markets in the Midwest. First-time buyers here can stack multiple forms of assistance: the City of Peoria Down Payment Assistance Program offers up to $5,000 (or 10% of the purchase price) as a forgivable loan for homes in Qualifying Census Tracts priced at $125,000 or less, and statewide IHDA programs layer on top with up to $15,000 through IHDAccess Home or $6,000 fully forgiven through IHDA Access Forgivable. Nonprofit support comes from Habitat for Humanity Greater Peoria, and credit union buyers can have most third-party closing fees covered by CEFCU. Combined, a qualifying Peoria buyer can access $15,000 to $20,000+ in assistance — often enough to cover the entire down payment and closing costs on a modest home.
City Programs in Peoria
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Peoria Down Payment Assistance Program | Forgivable Loan | Up to $5,000 or 10% of purchase price | Yes | View → |
| Peoria Housing Authority Native American DPA Grant | Grant | Up to 20% of purchase price or $18,000 | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $5,000 or 10% of purchase price
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to 20% of purchase price or $18,000
- First-time only:
- No
State Programs in Illinois
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Chicago Downpayment Plus (DPP) | Grant | Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount) | No | View → |
| IHDA Access Deferred | Deferred Loan | — | Yes | View → |
| IHDA Access Forgivable | Forgivable Loan | — | Yes | View → |
| IHDA Access Repayable | Zero-Interest Loan | — | Yes | View → |
| IHDA Mortgage Credit Certificate (MCC) | Tax Credit | — | Yes | View → |
| IHDA SmartBuy | Forgivable Loan | — | Yes | View → |
| IHDAccess Home | Deferred Loan | — | Yes | View → |
| Opening Doors / Abriendo Puertas | Forgivable Loan | — | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount)
- First-time only:
- No
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- First-time only:
- Yes
- Type:
- Tax Credit
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| CEFCU First-Time Homebuyer Closing Cost Assistance | Grant | Covers most third-party closing fees (appraisal, credit report, flood determination, tax service fee, title company closing fee, recording fee) | Yes | View → |
| Habitat for Humanity Greater Peoria Homeownership Program | Zero-Interest Loan | Affordable home with 0% interest mortgage (no down payment required) | No | View → |
- Type:
- Grant
- Amount:
- Covers most third-party closing fees (appraisal, credit report, flood determination, tax service fee, title company closing fee, recording fee)
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with 0% interest mortgage (no down payment required)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most Peoria-specific programs require household income at or below 80% of Area Median Income and first-time buyer status (no homeownership in the past three years). IHDA state programs allow higher income limits that vary by county and household size.
Step 2: Complete HUD-approved homebuyer education. METEC in Peoria is a local HUD-approved housing counseling agency and can provide the certificate required by both the City program and IHDA. Habitat for Humanity Greater Peoria also offers financial education.
Step 3: Contact the City of Peoria Community Development Department to confirm the target property is within a Qualifying Census Tract and to request a Down Payment Assistance application. The home must be priced at $125,000 or less to qualify.
Step 4: Get pre-approved with an IHDA-participating lender. IHDA maintains a statewide lender directory at ihda.org. Many local Peoria lenders including CEFCU participate. Your lender will determine which IHDA product (Access Home, Access Forgivable, Access Deferred, or Access Repayable) best fits your situation.
Step 5: Find a home that meets the price and location limits. For the City program the home must be in a Qualifying Census Tract in Peoria and at or below $125,000. IHDA has separate statewide purchase price limits.
Step 6: Submit your combined application. City DPA and IHDA assistance can often be layered on the same transaction. Your lender coordinates both approvals before closing. Plan for 30 to 60 days from contract to close.
Step 7: Close and occupy. The City of Peoria grant is forgiven after two years of owner-occupancy. IHDA forgivable assistance is forgiven over 10 years. Keep the home as your primary residence to avoid repayment.
Frequently Asked Questions
How much down payment assistance can I get in Peoria?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price in Peoria?+−
What homebuyer education is required?+−
What is the Qualifying Census Tract requirement?+−
Can I use a credit union to get these programs?+−
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